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The U.S. Government and its Federal agencies have documented specific guidance regarding property use and disposal. Title 22 Code of Federal Regulations Part 226, Administration of Assistance Awards to U.S. Non-Governmental Organizations, Section 226.34, Equipment, states when the recipient no longer needs equipment, the equipment may be used for other activities in accordance with the following standards for equipment with a current per unit fair market value of $5,000 or more:
- A recipient may retain the equipment for other uses provided that compensation is made to the original federal awarding agency or its successor.
- If the recipient has no need for the USAID-financed equipment, the recipient shall request disposition instructions from the USAID AO.
- USAID shall determine whether equipment can be used to meet the Agency’s requirements.
- If there is no Agency need, USAID shall report the availability of the equipment to the General Services Administration to determine whether a requirement for the equipment exists in other Federal agencies.
In addition, the U.S. Government Accountability Office issued Standards for Internal Control in the Federal Government (the Standards) in November 1999.
One of the five standards for internal control is information and communication. The Standards state that information should be recorded and communicated to management and others within the entity who need it, in a form and within a time frame that enables them to carry out their internal control and other responsibilities.
General Recommendations
- Submit planned replacement needs to and request disposition instructions from the agreement officer for USAID-financed equipment in excess of $5,000 for which the recipient has no need.
SOURCE: AUDIT REPORT NO. 6-279-11-005-P February 28, 2011
The recommendations are derived from audit reports of the Office of the Inspector General. The source refers to the audit report, which is available on this site as part of the Audit Database Project: an educational tool for compliance with USAID regulations. Please see the disclaimer of this site before using recommendations.
- Requiring Containerization Has Not Been Fully Considered - Principle IV-2 of the Generally Accepted Commodity Accountability Principles
- Assets May Have Been Diverted - GAO’s “Standards for Internal Control in the Federal Government
- Strengthen Commodity Controls - P.L. 480 Handbook
- Options for Unused Equipment - ADS 324.5.4b
- Adequate Controls Over Food Distribution Were Not Fully Implemented - Principle II-3 of the Generally Accepted Commodity Accountability Principles - 22 CFR 211.10(a)
- Storage Conditions for Food Commodities Need Improvement - Generally Accepted Commodity Accountability Principles, Principle IV-2,11 - 22 CFR 211.5(b) - USAID Commodity Reference Guide
- Assets Were Missing, Diverted, and Sold for Profit - GAO publication Standards for Internal Control in the Federal Government, pages 14 and 15
- Partner Did Not Track or Manage Inventory Effectively - ADS 596.3.1 - GAO’s publication Standards for Internal Control in the Federal Government
- Sustainability of Facilities Is Questionable - Section 611(e) of the Foreign Assistance Act of 1961
- Contractor’s Property Accounting System Was Not Approved, and Required Reports Were Not Submitted - USAID Acquisition Regulation (AIDAR) 752.245-71 - AIDAR 752.245-70 - ADS 629.3.3.2
- Plan for End-Use Checks of Donated Commodities is Not Available - Automated Directives System (ADS) 324.5.6,
- Inventory is Not Tracked or Managed Effectively - ADS 596.3.1 - U.S. Government Accountability Office’s publication Standards for Internal Control in the Federal Government
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